Property developers in Malaysia have become more wary about industrial parks although they are still preferred by investors, says Maybank Investment Bank Bhd (Maybank IB).
According to the investment bank, developers intend to introduce fewer properties slowly in 2023 to prevent increasing building costs and probable delivery delays.
"Also, developers are cautious on property demand as higher interest rates would hit buyers' affordability," it said in a note today.
The investment bank reported that mortgage loan applications fell to RM33.5 billion in October 2022, down seven per cent quarter over quarter (q-o-q) and 15 per cent annually.
Having said that, Maybank IB predicted that the industrial properties sector will continue to have robust sales growth through 2023, after the reopening of international borders in April 2022.
"We expect the strong sales momentum to extend into 2023 with rising investment diversion from China on persisting United States (US)-China trade war," it said in a note today.
Maybank IB anticipates that the financial year 2023 property sales targets will either be unchanged or slightly increased year over year, due to delayed developer launches and ongoing labour supply concerns.
Overall, the investment bank has maintained its "neutral" call on the real estate market for the upcoming year due to the likelihood of external variables including tighter monetary policy, supply chain disruptions, and labour shortages.